Why the Concept of Artificial Legal Person is a Fiction

A fundamental concept in the modern times secular company law is the fact that a company is incorporated pursuant to the provision of the law and it sails in the protection of a distinct legal person which is treated as separate from its shareholders. This feature is applicable in a case where the company is a public limited company or a private limited company.

A company has a legal person is a position making it capable of owning a property, suing and being sued, being subjected to legal obligations and rights (Caudill, 2012). This concept makes it possible for the recognition of a juristic person. This is a presumed person, that is, a legal entity with separate form from the people who established it.It is considered to have some human features, though not human qualities. It is a presumed person though not a human being.

Therefore entities like hospitals, universities, commercial companies can have a presumed person and are eligible to enter into a contractual relationship given that a relationship is performed by their competent representatives. This is because, there is a figurative sense that a body of men or a company are sometimes considered to be an artificial person, since the law associate them as one, and grant them a  number of powers which are possessed by natural persons.

In addition, a company is an artificial person by law and enjoy a number of merits in comparison to other business structure. For example, a limited company has a legal existence which is separate from its members and its management as well (Caudill, 2012). Secondly, there is restriction on the choice of the company’s name. Choosing a particular name complies with the rules and no one else can use such name. Partnerships and sole traders have the protection of the trademark legislation. Consequently, it can defend or commence a legal proceeding in its name.Lastly, the corporation has an everlasting life. Employees, management, and directors act as a gent of the company.

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